/ES approaching upper trendline of wedge, drew another trendline or wedge earlier to touch more points & this trendline has been broken, but second hasn’t caution should be exercised. Last wedge that played out was broken with far more strength & volume. Energy & Financials look to be the strongest sectors. Health Care has potential.
Energy
- Premarket gap up, but wild volatile price action on daily with overall downtrend. Most names within sectore have also gapped up but are currently experiencing steep selloffs. may be gap fill situation for those names that have not already filled. Oil has nearly filled weekend gap up.
- XOM | Gap fill seems likely, seeing CVX Action. Upside does not seem prudent.
- SHEL | Also looks decent for gap fil
Financials
- Had strong close on elevated volume Friday & currently most names in sector are showcasing premarket strength.
- JPM | Looks like if PM high broken could see push to 115.
Consumer Discretionary
- Forming something of a symmetrical triangle on daily, will wither reject upper trendline or prove to breakout, likely contingent on market strength.
- TGT | Considerable premarket strength through gap area, if this holds, then potential for more upside, but gap is ominous below
- AMZN | If 115.6 taken out then room to follow through to the upside. Watch for downside gap fill.
Industrials
- Showcased what looks like strength at close on daily on Friday. Decent volume with wick.
- UPS | Currently in gap zone, could fill remainder in which case there is close to two points to be had.
- BA | Considerable gap up & premarket strength, however it’s broken above what was strong trendline & push back below seems possible.
Information Technology
- NVDA | Approaching gap zone. Could see rejection, just because it’s touched does not mean it will follow through. however, if market maintains strength this could be one of the first names to sharply ascend. Best play yet.
Communication services
- Overall downtrend with decent Friday close.
- META | Entering gap zone & market seems to be holding to the upside. Has considerable amount to fil, however beware downside gap as well. Treacherous area.
You may be emotionally compromised as you’re currently holding what is a losing trade from premarket, you took an MES trade. however there are more than a few decent setups, mostly to the upside. For some reason feel pretty unfazed. A loss is a loss & your reasoning behind the trade was decent. The sizing was too large but this can’t be helped as the minimum size for the micro futures is equivalent to 50 shares. You doubled down when there was an opportunity, which was a mistake. Feel tempted to get back in with a regular future, but this is folly, regardless of how it turns out. Exercise discipline. Take your losses.